Committee hears bill to extend sales-tax exemption for forklifts used outside manufacturing

Senate Bill 126, sponsored by Sen. Wilkin with Sen. Lang listed as joint sponsor, would expand an existing Ohio sales-and-use-tax exemption for forklifts so that purchases by logistics, warehousing and grocery businesses are also exempt.

The bill was heard in the Ohio Senate Ways and Means Committee, chaired by Chairman Blessing. In testimony, Wilkin said the current law exempts forklifts purchased for manufacturing only and that the proposed change would “equalize the playing field” for businesses that use forklifts in logistics, distribution and grocery operations. “This disparity is putting those in Ohio who purchased forklifts for logistics, warehousing, grocery, and countless other industries at a disadvantage compared to their manufacturing competitors,” Wilkin said.

The sponsor framed the change as economic competitiveness: neighboring states already exempt forklifts used both in logistics and manufacturing, he said, and the bill would help keep purchases and dealership business in Ohio.

Committee members asked about the scope and who would qualify. Ranking Member DeMora asked whether the exemption would apply to other equipment or only forklifts; Wilkin replied the bill is targeted specifically to forklifts. DeMora also asked whether company size mattered; Wilkin said the bill does not set size thresholds and would apply to any qualified logistics business, from larger firms to smaller operators.

Sen. Rovner asked whether forklifts are manufactured in Ohio; Wilkin said he believed so and referenced a family-connected manufacturer but declined to insist on the detail. No statutory citation or fiscal estimate was presented during the sponsor’s testimony.

No committee action or vote was recorded at the hearing; the item received sponsor testimony and questions from committee members and concluded with no formal decision recorded.